The Tassat Group is offering banks a no-code approach to using smart contracts on blockchain to support payment logic within its TassatPay payments platform.

TassatPay provides an individual blockchain for banks as well as digital wallet and tokenization capabilities. The fintech began marketing that offering in the first quarter of 2021. The new solution, Smart Contracts, incorporates “out-of-the-box smart contract templates,” Tassat Group Chairman and CEO Kevin Greene told Bank Automation News.

“You’ll now, frankly, have more automated control over discount policies, late fee penalty policies — all now becomes automated, highly controllable,” Greene said. For example, Greene said a bank might offer instructions that say a corporate client owes $1 million by April 30, but if it’s paid by April 15, then the client can pay $950,000.

Banks’ use cases for smart contracts with corporate clients include requests for proposals, contracts, invoicing and payments. Smart contracts can handle both on-time and late payments, including the assessment and collection of late fees. The blockchain would automatically enact the terms upon payment. Blockchain is considered more secure than traditional systems because of its private permissions, Greene noted.

“It’s really a wonderful way for corporations to manage both payables and receivables,” Greene said. “You have a little bit more visibility on your cash flows.”

While the solution comes with templates, banks can create their own smart contracts with a no-code interface, then submit them to Tassat to certify they’re compatible with the platform.

About five banks use TassatPay currently, including the $50 billion Western Alliance Bank, $19.6 billion Customers Bank and $1.08 billion Cogent Bank, which signed in January. There is a pipeline of close to 50 banks waiting for deployment, Greene said. TassatPay has processed more than $370 billion in digital payments for banks’ commercial customers, according to the company.

The smart contracts offering is yet another play by the New York-based startup, launched in 2017, to expand blockchain’s use at financial institutions. Tassat launched a blockchain network for banks called Digital Interbank Network on Dec. 16 that enables a member bank’s B2B clients to make and receive real-time payments between clients of member banks.

That network has about 40 members of its working group, and Tassat is in discussions with about 200 banks total, Greene said.